Opinion Leadership & Diffusion of Innovations
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1 Opinion Leadership & Diffusion of Innovations Week 10 Prepared by : W. Rofianto
2 Opinion Leadership The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients. Opinion Leader Opinion Receiver Opinion Seeker
3 Word of Mouth in Action
4 Dynamics of the Opinion Leadership Process Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street
5 Motivations Behind Opinion Leadership Issues The Needs of Opinion Leaders The Needs of Opinion Receivers Purchase Pals Surrogate Buyers versus Opinion Leaders Self-involvement Social involvement Product involvement Message involvement
6 Motivations Behind Opinion Leadership Issues The Needs of Opinion Leaders The Needs of Opinion Receivers Purchase Pals Surrogate Buyers versus Opinion Leaders New product or new usage information Reduction of perceived risk Reduction of search time Receiving the approval of the opinion leader
7 Motivations Behind Opinion Leadership Issues The Needs of Opinion Leaders The Needs of Opinion Receivers Purchase Pals Surrogate Buyers versus Opinion Leaders Actually accompany consumers on shopping trips Used 25 percent of the time for purchases of electronic equipment
8 Motivations Behind Opinion Leadership Issues The Needs of Opinion Leaders The Needs of Opinion Receivers Purchase Pals Surrogate Buyers versus Opinion Leaders Surrogate buyers may replace opinion leaders An example is a wardrobe consultant who helps in the purchase of business clothes
9 Profile of Opinion Leaders GENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIES Innovativeness Willingness to talk Self-confidence Gregariousness Cognitive differentiation CATEGORY-SPECIFIC ATTRIBUTES Interest Knowledge Special-interest media exposure Same age Same social status Social exposure outside group
10 Two-Step & Multistep Flow of Communication Theory
11 Issues in Opinion Leadership and Marketing Strategy Advertisements Stimulating Opinion Leadership Word of Mouth May Be Uncontrollable Marketers Seek to Take Control of the Opinion Leadership Process Creating products with built-in buzz potential Strategy designed to stimulate buzz Viral marketing Weblogs
12 Diffusion of Innovation Diffusion Process The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time. Elements of the Diffusion Process The Innovation The Channels of Communication The Social System Time Adoption Process The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.
13 Firm-oriented definitions Product is new to the company Product-oriented definitions Continuous Dynamically continuous Discontinuous Market-oriented definitions Based on consumer exposure Consumer-oriented definitions Consumer judges it as new Defining Innovations
14 Product Characteristics That Influence Diffusion Relative Advantage Compatibility Complexity Trialability Observability Time and Diffusion Purchase Time Adopter Categories Rate of Adoption
15 Adopter Categories
16 An Enhanced Adoption Process Model
17 Issues in Profiling Consumer Innovators Defining the Consumer Innovator Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators?
18
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